Paper long abstract:

Unexplained Wealth Orders (UWOs) were introduced in the United Kingdom as part of the Criminal Finances Act 2017. They are an investigative tool, a form of disclosure that in effect reverses the usual burden of proof regarding the source of funds used to buy property in the UK. Instead of law enforcement officials having to prove that a property was purchased with illegally obtained capital, the owner has to demonstrate that the funds were legitimately earned. In 2019, the UK’s National crime Agency (NCA) brought one the first UWOs against a property whose ultimate beneficial owner was thought to be the deceased Rakhatv Aliyev, erstwhile son-in-law of former President Nazarbayev. Unfortunately for the NCA, it turned out that the real beneficial owner was Dariga Nazarbayeva, daughter of former President Nazarbayev, and a person who remained alive, wealthy, well-connected and well-served by the leading law firm Mishcon de Reya. In 2020, the UK’s National Crime Agency lost the case; however, documents from the court case and additional open source research provides a rich trove of sources for an exemplary case of how enabling works. Our paper dwells on three conditions that allowed the Aliyev/Nazarabyev suspicious wealth to be explained. First, we look at the network of enablers from company formation agents to lawyers who enabled the purchased. Second, we consider the process of legal enabling, the evidence accrued and arguments made by Mishcon de Reya to successfully defend Nazarbayeva. Third, we explore the weaknesses of the legislation and its enforcement that led to the ultimate failure to end impunity for kleptocratic elites. We conclude by placing our exploratory findings in a wider context of anti-corruption and point to areas of policy implication and further research.